Bitcoin News and Finance
FATF’s Annual Crypto Review Highlights ‘Continued Use of Anonymity Tactics’ and ‘Lack of Effective’ Regulation Skip to main content

FATF’s Annual Crypto Review Highlights ‘Continued Use of Anonymity Tactics’ and ‘Lack of Effective’ Regulation

FATF's Annual Crypto Review Highlights ‘Continued Use of Anonymity Tactics’ and 'Lack of Effective' Regulation

The Financial Action Task Force (FATF) has published the organization’s 12-month review and the research highlights that only 45% of the 128 reporting jurisdictions have complied with AML/CFT policy and FATF recommendations. The annual review stresses that the “lack [of] effective” regulation makes it “challenging for competent authorities to follow the transaction trail, buying more time for criminals to move criminal proceeds.”

Less Than Half of the Reporting Jurisdictions Have Met FATF’s Crypto Compliance Standards

Over the last few years, the FATF intergovernmental organization has been focused on virtual assets (VA) and virtual asset service providers (VASPs). FATF is a group dedicated to combating money laundering (ML) and terrorism financing (TF) on a global scale. Bitcoin.com News recently reported on how the FATF applied the Travel Rule to stablecoins, decentralized finance (defi), and non-fungible token (NFT) assets. Further, the intergovernmental organization has been investigating the regulation of noncustodial wallets.

The 12-month review and the FATF researcher’s findings claim that only 45% of the 128 reporting jurisdictions have complied with the organization’s recommendations and standard AML/CFT policy. The report highlights two trends since the last 12-month FATF review on VAs and VASPs. FATF has noticed “the use of VASPs registered or operating in jurisdictions that lack effective AML/CFT regulation, as well as the use of multiple VASPs (local and/or overseas). This makes it more challenging for competent authorities to follow the transaction trail, buying more time for criminals to move criminal proceeds,” the entity’s research notes.

The global financial regulator has also observed the continued use of anonymity tactics applied to the cryptocurrency sector and related transactions. Following the onset of Covid-19, the FATF has “observed the increased use of virtual assets to move and conceal illicit funds. One jurisdiction reported the use of virtual assets to launder proceeds earned from selling COVID-19 medicine.” The FATF researchers believe regulating jurisdictions need to get a better grasp on the situation but instead, they are focused on “stablecoins” and “mass adoption.” One of the main trends in the cryptocurrency ML/TF risk landscape since June 2019 includes:

The continued use of tools and methods to increase the anonymity of transactions. This includes registering Internet domain names through proxies and using DNS registrars that suppress or redact the true owners of the domain names, the use of tumblers, mixers, and anonymity-enhanced cryptocurrencies or privacy coins, using decentralised exchanges and applications, chain-hopping and atomic swapping exchanges, and dusting.

FATF Hopes Jurisdictions Will Implement Regulations and Dissuasive Sanctions Toward Non-Compliant VASPs

The gist of the 23-page report is that the FATF is focused on getting jurisdictions to implement regulations toward ML and TF as deemed necessary. In a press statement, the global regulator insisted the “majority of jurisdictions have not yet implemented the FATF’s requirements, including the ‘travel rule,’ and this disincentivizes further investment in the necessary technology solutions and compliance infrastructure.”

Countries need to mandate that all VASPs comply with regulation and supervision or monitoring for AML/CFT, according to the report. The countries also need to make sure there are “effective, proportionate and dissuasive sanctions, whether criminal, civil or administrative” to deal with violating VASPs. “Sanctions should be applicable not only to VASPs, but also to their directors and senior management,” the report details.

The main objective highlighted in the FATF report notes the global regulator’s aims:

  • The occasional transactions designated threshold above which VASPs are required to conduct customer due diligence is USD/EUR 1,000.
  • Countries [to] ensure that originating VASPs obtain and hold required and accurate originator information and required beneficiary information on virtual asset transfers.
  • Monitoring of the availability of information, and taking freezing action, and prohibiting transactions with designated persons and entities.

What do you think about the latest FATF 12-month review on VAs and VASPs? Let us know what you think about this subject in the comments section below.

Labels:

Comments

Post a Comment

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl...
Post a Comment
Read more

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju...
Post a Comment
Read more

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and...
Post a Comment
Read more

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r...
Post a Comment
Read more
Blogarama - Blog Directory